How to Identify Lumber Companies Engaged in Production

What category do lumber companies fall under when they buy equipment for forest harvesting and milling?

Options: A. Direct consumer B. Industrial user C. Business user D. Manufacturer

Answer:

C. Business user

When lumber companies purchase trucks, bulldozers, and other equipment for forest harvesting and milling, they fall under the category of Business user. This term is used for companies that procure manufacturing tools and equipment from other businesses and use them for their production activities.

After the production process is completed, these companies sell their lumber products commercially in the market under their own brand or through their own channels. By engaging in the production and sale of lumber products, these companies function as business users within the industry.